Namibia has awarded an emergency fuel supply deal to Vitol Group, through its subsidiary Vitol Bahrain E.C., for a three-month period from July through September 2026. This contract, valued at approximately $7.2 billion if oil prices remain high, aims to mitigate price shocks for oil products caused by the ongoing Iran war. The Minister of Industries, Mines and Energy, Modestus Amutse, stated that Vitol was selected because its offer met the country's full fuel requirements at the basic fuel price, without any premium, and did not require a guarantee.
The decision has sparked significant controversy, with politicians and industry experts in Namibia raising concerns about the lack of transparency and the bypassing of the state-owned oil company, Namcor. Former Namcor acting managing director Maureen Hinda-Mbuende criticized the deal, suggesting it jeopardizes Namibia’s fuel security and undermines the long-term competitiveness of the downstream fuel sector. Her comments were supported by claims from industry players who alleged that Namcor had offered a cheaper deal than Vitol's, which would cost approximately $2.4 billion per month.
The government, however, maintains that Vitol's offer was superior. Modestus Amutse explained that Vitol Bahrain, which already has a presence in the region, was chosen after consultations with various governments, international oil firms, and local industry to keep fuel prices as low as possible. Prime Minister Elijah Ngurare acknowledged the concerns raised in the National Assembly, stating that fuel security is a matter of national importance and that discussions are ongoing to ensure an affordable and secure fuel supply for Namibians. Vitol has faced similar criticisms regarding transparency in past fuel supply deals with Mozambique.
